Verizon has cut Yahoo's price by $350 million

Yahoo and Verizon have agreed to cut their deal price by $350 million following Yahoo's disclosures of two data breaches.

According to a statement Tuesday announcing the amended deal, Yahoo will be responsible for half of the cash liabilities related to government investigations and third-party lawsuits.

Verizon agreed to buy Yahoo's ailing internet business last July for $4.8 billion. The revised deal is worth about $4.48 billion in cash. Both companies see the deal closing in the second quarter.

Yahoo in January said the breaches, which affected more than a billion user accounts, could result in the termination of the deal. Verizon CEO Lowell McAdam chose to move ahead with the deal, however, out of a belief that it would help the wireless carrier take on Google and Facebook.

By following through, Verizon will be able to expand its targeted advertising platform. Verizon could also become a major media company by owning the extensive reach of Yahoo's news, sports, and finance sections.

The Securities and Exchange Commission is investigating whether Yahoo should have told investors about the data breaches sooner.